May 12, 2008

US soy yield to climb by 3 percent

The US soy production is supposed to jump by 20 percent in 2008 to 84.5 million tonnes, yet low carry-over from last year will reduce the impact of the increase by only 3 percent to 2.5 million tonnes.

Analysts also pointed that the growing domestic demand for soy and the pressure to rebuild depleted stocks might compromise the current export volume in the coming year.

Soy export volume is expected to fall from 1.1 million tonnes to 28.6 million tonnes in 2008/09.

With a tight supply in 2008/09, analysts expect little that soy prices will decline significantly in the coming year.

Furthermore, they pointed out that with carry-over down to 4 million tonnes, there is little cushion against a US production shortfall.